10 November 2010

3 minute read

South America

The projection was made by the new chairman of the Brazilian Meat Exporting Industries Association (Abiec), Antonio Jorge Camardelli, who took over the organization approximately one month ago. Last year, Brazil obtained US$ 4.1 billion in revenues from foreign sales of beef and shipped 1.2 million tonnes. Therefore, in 2010 there should be growth of 22 per cent in terms of value and 50 per cent in terms of volume.

From January until October this year, Brazil posted US$ 4.1 billion in export revenues, and exported 1.4 million tonnes. Revenues grew by 22 per cent and volume grew by two per cent. Prices were 17 per cent higher. In October, revenues reached US$ 419 million and shipments totalled 134,000 tonnes. Revenues increased by 11 per cent, the volume dropped by 14 per cent and prices rose by 22 per cent.

The price increase in Brazilian exports follows a global trend of rising cattle prices, and reflects cost adaptation on the part of Brazilian industries. The current level of meat prices, according to Mr Camardelli, enables Europe to compete in some markets, which it could not do before due to its costs.

The Abiec chairman claims that Europe is seeking markets which it has supplied in the past, due to their nearness. From now on, the high price of cattle worldwide, alongside other factors, such as protecionist measures, should make it easier for Europeans to deal with old clients. He believes that Europeans are seeking, for instance, African markets such as Algeria, Egypt and Turkey.

Egypt, for example, is among the leading foreign markets for Brazilian beef. In October, the Arab country ranked third on the list of importers, having purchased the equivalent of US$ 32 million and 10,000 tonnes, representing an increase of 203 per cent and 143 per cent, respectively. The European Union is the world's tenth leading exporter of beef and the second leading consumer. Brazil is the leading exporter, the second leading producer, after the United States, and the third leading consumer.

The export figures concern all types of beef, including raw, processed, offal, tripe and salt beef. Exports of processed beef reflect the United States' restriction on purchases from Brazil due to Ivermectin, a veterinary drug found in excess in some batches shipped from the country. In October, processed beef sales declined by 38 per cent in value and 41 per cent in volume. From January to October, revenues and volume have dropped by 19 per cent.

Mr Camardelli expects the United States market to be open again between late November and early December. Besides, the industry should make efforts to enter other markets, especially the leading importers of beef. According to the Abiec chairman, next week, at a meeting at the Foreign Relations Secretariat of the Ministry of Agriculture, a market will be selected for Brazil to invest in.

TheCattleSite News Desk